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A senior Whitehall source told The Daily Telegraph Mr Clarke has made changing the law a priority because he is sick of seeing cases of law-abiding people fighting to regain possession of their properties.

The source said: “Ken has had enough of seeing hard working home owners battle to squatters out.

“He is determined to use the full force of the law to save people from the nightmare of having to fight to get their houses back.

“The days of 'squatters’ rights' will be over.”

Squatting is not currently a criminal offence in England and Wales and instead it is up to the owners to use the civil courts to enforce their rights, which can turn in to lengthy and expensive legal battles.

They must also prove to the courts that they are either a ''displaced residential occupier'' – someone who has returned from holiday to find squatters in their house – or a ''protected intended occupier'', who is intending to move into an empty property.

In contrast, squatters are also protected by other laws, including the Criminal Law Act 1977, which prevents a home owner forcing their way back in because it makes it an offence to use violence to gain access when there is someone on the premises who is opposed to entry.

They can also take advantage of the controversial law on "adverse possession", which can allow someone who has occupied a building for 10 years to claim ownership of it.

One squatter group, known as The Really Free School, has occupied a series of properties in London, including a building in Bloomsbury Square belonging to an antiques expert and a £6 million house owned by Mr Ritchie. Then they took over an empty pub near Oxford Street before moving on to another near Leicester Square.

Earlier this year, businessman John Hamilton-Brown was reduced to begging through his own letterbox for squatters to leave his £1 million home.

In 2009 squatters moved into David Blunkett's former grace and favour mansion in central London while others took over a £33 million house close to Nigella Lawson's home in Eaton Square, central London.

Officials are now drawing up plans to such property invasions illegal with a likely maximum penalty of a custodial sentence.

Squatting is already a criminal offence in Scotland and someone guilty of it could be sentenced to 21 days in jail.